Mexico and the US extend trade contracts and delay new 30% tariffs
Mexico and the US have extended trade contracts and delayed new 30% tariffs while maintaining USMCA protection for most exports.
U.S. stock futures have fallen low after President Donald Trump signed an order to impose broad new tariffs on countries around the world ahead of his major monthly employment reports.
According to the Dow Jones survey of Economists, the employment report for July is scheduled for ET at 8:30am, indicating that the economy has added 100,000 jobs. Unemployment rates are up to 4.2% edge, up to 4.1% in June.
Tom Essaye, founder of Sevens Report Research, said employment reports like this would be considered a “just right” labor market. “It will further push back the growing tariff-related concerns, bring the Fed back on track to cut interest rates in September, and even invalidate the male dog story,” he said, and will also provide the stock with a reason to extend the recent rally.
Meanwhile, Trump has signed an executive order confirming “mutual” tariffs in dozens of countries with his latest operations ranging from seven days to 10% to 41%. He also said that they would switch transportation to avoid tariffs or that goods introduced would face an additional 40% tax.
Starting August 1, Canada will face a 35% tariff, excluding goods compliant with Canada-Mexico Agreement on Trade. That has been up from 25% previously.
The statement said countries not listed in the latest order will face an additional 10% obligation.
Previously, Trump said he was giving Mexico another 90 days to reach a long-term agreement with the US to avoid higher tariffs.
At 6:15am on ET, futures tied to the Blue Chip Dow fell by -0.95%, wide S&P 500 futures slipped -0.97%, and high-tech Nasdaq futures fell by -1.10%.
Corporate News
In addition, revenue continues to be important in determining the direction of the stock market. According to LSEG data and analysis, of the 297 S&P 500 companies that reported revenue through the morning of July 31, 80.8% exceeded analyst expectations.
After the market was shut down, Amazon and Apple (two so-called epic seven influential Mega Cap Tech stocks) reported the results.
Amazon surpassed Wall Street estimates in its second quarter results, but cloud computing growth was disappointing.
In contrast, Apple surpassed second quarter expectations, including its biggest revenue jump since 2021. Sales increased by over 13% in iPhone sales through tariff-related purchases and popular devices. The tariff costs were projected to reach $1.1 billion in the current quarter.
Of the seven non-existent strains,
- Coinbase violated its second-quarter adjusted earnings per share, but earnings were insufficient.
- Social media company Reddit’s second quarter results outperform Wall Street’s forecasts. The company said revenues rose 78% to $500 million, the fastest revenue growth rate in three years. It also provided bright third quarter guidance.
- CloudFlare surpassed forecasts in its second quarter results, bringing full-year profit and revenue guidance.
- First Solar reported second quarter results that exceeded analyst expectations and raised 2025 revenue guidance.
- The Striker’s second quarter results were better than expected. Medical device manufacturers have also raised their annual revenue outlook.
Medora Lee is a money, market and personal finance reporter for USA Today. You can contact her at mjlee@usatoday.com and subscribe to our free daily money newsletter for personal finance tips and business news every Monday to Friday morning.
